I am after some tips on tracking my portfolio. Does anyone use online based platforms such as sharesight? I have also read previous posts mentioning excel spreadsheets to keep track of dividend reinvestments, new parcel purchases etc. Also is the main purpose of keeping track of these details for when the time comes to sell and to work out CGT?
Yup this is all to work out CGT events. In most cases, this will be from a sale of units, but it can also happen in other situations. For ETFs, you want to also record any tax deferred distributions because it is a unit trust (I'll be in the yearly tax statement you get from Vanguard). This reduces your cost base for the units that you've purchased.https://www.ato.gov.au/General/Capital-gains-tax/In-detail/Trusts/Non-assessable-capital-payments-from-a-trust/?page=3
To track my parcels, I've just got a spreadsheet that has the headings for each of my holdings (eg, VAS, VTS, VEU, etc)
- Date of event (eg, purchase date, sale date, DRP allocation date, tax deferred distribution date)
- Bought / Sold units
- Unit price at which you bought/sold (you can find this on your contract note from your broker)
- Brokerage paid (this is considered as a direct investment expense, so you can adjust your cost base with these amounts)
- Cost base for purchases (ie, (units x unit price) + brokerage)
- Cost base adjustments (for deferred distributions - see link above)
- Cost of sales (ie, (unit x unit price) - brokerage)
- Capital gains (ie, cost of sales less cost base of purchases for units sold less cost base for adjustments.. this will be negative for a capital loss)
Remember that if you've signed up for the DRP, you also need to keep track of the extra units you've been allocated. The cost base of these units is the price that they state in their announcement to the ASX.
During a sale, the ATO allows you a few different methods to work out which parcels you've sold. Depending on the method you choose, this can affect your capital gains. eg, FIFO, average cost, or specific parcel. Using specific parcel can reduce your capital gains if you keep detailed records of each parcel because you can choose which parcels are disposed of.https://www.ato.gov.au/General/Capital-gains-tax/In-detail/Shares,-units-and-similar-investments/Identifying-when-shares-or-units-were-acquired/
Also remember that if you hold a parcel for a year or more, you are entitled to a 50% CGT discount when you sell these shares. eg, if your purchase shares for 1000, and you sell your shares for 2000 a year later, your capital gains is (2000 - 1000) x 50% = 500.
I've also got another spreadsheet that tracks a running balance of capital losses that I've carried forward for each tax year. These capital losses can be used to offset capital gains in the future.https://www.ato.gov.au/General/Capital-gains-tax/In-detail/Shares,-units-and-similar-investments/Claiming-losses-from-the-disposal-of-investments/?page=2
I think that's all. Feel free to correct me if I've stuffed anything up :)